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21 views12 pages

9hfuleqnrlml5uhh9ilx Signature Poli 180418063756

Uploaded by

hvr.harshvardhanraohvr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Blockchain

Technology

Presented by-Harshavardhan Dunna


B.Com (H)-C
23/50164
Blockchain Overview

Blockchain technology is a digital innovation that is


poised to significantly alter financial markets within
the next few years, within a cryptographic
ecosystem that has the potential to also
significantly impact trusted computing activities
and therefore cybersecurity concerns as a whole.
Where it all started

Blockchain technology was first introduced in a white paper entitled:


“Bitcoin: A Peer-to-Peer Electronic Cash System,” by Satoshi Nakamoto in
2008.
● No reliance on trust
● Digital signatures
● Peer-to-peer network
● Proof-of-work
● Public history of transactions
● Honest, independent nodes control majority of CPU computing power
● Nodes vote with CPU computing power
● Rules and incentives enforced through consensus mechanism
Three levels of blockchain

1. Storage for digital records


2. Exchanging digital assets (called tokens)
3. Executing smart contracts
- Ground rules – Terms & conditions recorded in code
- Distributed network executes contract & monitors compliance
- Outcomes are automatically validated without third party
Ledger

A ledger is a document that stores all the transactions made


between the people.

All the transactions are sent to everyone in the network so we say


it is a decentralized network in which there is no central authority
have access to the transactions but all the nodes in the network
has the access.

And anyone in the network can create a transaction .

Now would that mean that someone say alice tries to make a face
copy of transaction that some has sent him 20 dollars , and add
Digital Signature

This problem is solved by using a digital signature of every transaction of block


that is created.

A digital signature contains a public and a private key so that every person can
sign a block using his private key and the data in it .

And all the other member can use his public key to ensure that the block is valid
and is generated by an authentic user

Sign( Message , Secret key) = Signature

Verify(Message , Signature , public key )

Now your would be wondering that what if someone guesses signature value and
tampers with it
Private key and Public key
There are various algorithms that define 2 keys one is named as public key and
the other is defined as a private key.

Such algorithms are :

1. RSA
2. EDSC
3. DH

Consider EDSC that creates 256 bits key, so in order to guess this signature a
computer has to generate all the permutations which is about 2^256
combinations . This is too much for even a ton of supercomputers to crack.
Hash Functions or Digest

These are the functions that generate values which are related to the message
used in it

Bitcoins use SHA256 .

SHA256(“Hey this is bob”) =


{ e0xuwgr97q2r9qncrm928rcnq9p4cwr8cy237r9cgnwprl8c2mp9rc7ung9foc7
uwegfc9unfco92c7mitcq3p8fcnmg9c4nmfnc8yfc2emfhc28rny498fcqw0rncnfc92qp
rncf018y4m2 }

SHA256(“Hey this is boc”) =


{ zefiaiufgwnfioqweucmgqpwocfugqmwpofihwxpfluqwfnhw98ecr297tyn9724t
cm1402pctnymp048tym49ptnym0tp48tym08tymc084ytmc28yte0924ymct0284y
mc2ycmtc8m40 }

Even if i slightly change the message the whole hash changes . so there is no way
of getting the message back from the hash.
Proof of work

To get the authenticity of every block you need to solve or get the mathematical
hash of the whole block

Certainly every block contains the hash of the previous block . So in order to
confirm the current block one should have already verified the previous blocks.

These require certain computational power. For giving this computational power
and verifying the ledger the user is awarded with some bitcoins that are generated
from thin air .

This also prevents anyone to tamper with the data , if anyone does tamper with
one block then he has to calculate all the proof of work for the the respective
blocks in the chain. This is impossible for even tons of supercomputers .

Moreover the chain will become invalid


Consensus

The one underlying factor that cannot make alice fraud a transaction or create a
fraud chain is that only the majority chain is considered to be valid .

To fraud a chain you have to create 51 percent of the majority which is like
tackling 50 percent of the computers world wide .
Uses

Cryptocurrency

Decentralized Notary

Medical Records

Artificial Intelligence

Digital Voting

Smart Contracts

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